Automotive Lubricants Market Trends

Growth Drivers

• Rapid Swelling of Population with Middle Income - Population growth has driven the production of automotive lubricants owing to the rising demand for vehicles. With the growth of the Gross Domestic Level (GDP) level, the disposable income of individuals has increased, which in turn, is expected to increase the adoption rate of automotive lubricants owing to rising spending capacity. According to World Bank, the total population with middle income in the world rose from 5.51 Billion in 2015 to 5.86 Billion in 2021.
• High Number of Road Accidents in the Past Years – In the past few years, the number of road accidents has considerably risen. This has generated the need for enhanced on-road performance of vehicles, and impact resistance from extreme pressure, weight, and force through automotive lubricants. Thus, the rising number of deaths owing to road accidents is expected to fuel the global automotive lubricants market’s growth in the forecast period. For instance, in 2022, the World Health Organization revealed that globally, approximately 1.3 million people die each year due to road traffic crashes.
• Rise in Demand and Production of Vehicles - As per the Organization of Motor Vehicle Manufacturers (OICA), the global production of vehicles was 80 million units in 2021. This is a rise from 77 million units in 2020 across the globe.
• Growth in Production of Sports Cars – As per estimations, sports car sales are anticipated to augment to 920K vehicles in 2026. This is an increase from 840K vehicles in 2022.
• Worldwide Surge in Air Pollution - For instance, air pollution is a severe hazard to the health of almost 4 billion people (93%) across Asia and the Pacific region. In 2019, four Asian countries, including China and India, had the highest population-weighted average exposure to PM 2.5.
• Stringent Government Rules Regarding Carbon Dioxide Emission- Increasing carbon emission is a major concern for the government of the nations to keep it in necessary control for environmental safety. Hence, various governments have disposed of some regulations to lower the carbon emissions, that are estimated to favor the market growth during the forecast period. For instance, for model years 2023–2026 of passenger automobiles and light trucks, the EPA issued new national greenhouse gas (GHG) emissions regulations in December 2021 in the United States. The final regulations are anticipated to reduce other essential pollutants as well as GHG emissions significantly.

Challenges

• High Costs of Automotive Lubricants – As automotive lubricants are composed of base oils that are extracted through refineries, their cost ultimately increases. As a result, the population with low-income levels is not able to opt for automotive lubricants for their vehicles. This trend is anticipated to hinder market growth in the upcoming years.
• Increased Preference for an Extended Oil Drain Period
• Low Awareness Among the Population